GBPJPY portrays a corrective bounce off the lowest level in seven months while recovering from a 10-month-old ascending support line. The rebound also takes clues from the oversold RSI (14) line and the market’s consolidation mode after a heavy slump. While the aforementioned clues suggest a continuation of the quote’s further recovery, the bearish MACD signals and the pair’s successful trading below the 200-SMA support of 191.80 keep the sellers hopeful. Even if the buyers manage to cross the 200-SMA hurdle, a previous support line from March 2023, near 194.50 by the press time, will act as the final defense of the bears before giving control to the bulls.
On the contrary, rising trend lines from July and October of 2023, close to 182.50 and 180.00 in that order, restrict the short-term downside of the GBPJPY pair. Following that, the December 2023 low of 178.30 and the July 2023 low near 176.30 will entertain the pair sellers. It’s worth noting, however, that the quote’s sustained weakness past 176.30 will make it vulnerable to slump toward the 170.00 psychological magnet.
Overall, GBPJPY consolidates the previous heavy fall but the resumption of a bullish trend is far from the table.
